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UPDATE: Wells Fargo Downgrades VMware On High Growth Estimates (VMW)

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FBR Capital Downgrades VMware To Market Perform
VMware (Investor's Business Daily)

In a note released Wednesday morning, Wells Fargo analyst Jason Maynard downgraded shares of VMware (NYSE: VMW) from Outperform to Market Perform and reduced his valuation range from $107-112 to $98-105.

The downgrade comes amid concerns that growth estimates for the company are too high. Maynard said the company relies on its new product areas to sustain growth and believes that as growth in the core business slows, new product areas will be unable to pickup the slack.

For the second quarter, Maynard is expecting VMware to post "decent" results. However, he is more bullish on the company's competitors and has reiterated Buys on Red Hat (NYSE: RHT) and Citrix Systems (NASDAQ: CTXS).

Latest Ratings for VMW

DateFirmActionFromTo
Jul 2015FBR CapitalDowngradesOutperformMarket Perform
Jun 2015Goldman SachsUpgradesBuyConviction Buy
May 2015SunTrust Robinson HumphreyInitiates Coverage onNeutral

View More Analyst Ratings for VMW
View the Latest Analyst Ratings

Posted-In: Jason Maynard Wells FargoAnalyst Color Downgrades Price Target Reiteration Analyst Ratings

 

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